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CAPITAL-BUDGETING5 MIN READ

Plant Manager Wants the Biggest IRR

Explain why IRR can mislead and redirect the conversation to NPV and project scale.

Ravi R Plant manager 01 Acknowledge 02 Reframe 03 Decide The metric debate 30 sec Scenario Ravi is using IRR to claim priority for a smaller project that clears the hurdle but creates less total value. Your job is to preserve trust while moving the decision to value. The formula 1 min Metric redirect Validate -> Limit -> Compare value

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